Optimism is said to be growing for the deployment of hundreds of billions in capital into North American commercial real estate in the second half of 2025 as sentiment builds from the year`s start.Dry powder, or uninvested capital held by investment funds, grew to records in 2022 and 2023 at a time of high interest rates and weak demand for deals. While some was invested last year, much remained on the sidelines in early 2025 as executives analyzed the Trump administration`s policy changes on trade, federal spending and foreign policy, according to mid-year outlooks from two prominent real estate consulting firms, PwC and Bain & Co.
Real estate brokerage professionals and private equity executives interviewed by CoStar News agreed with that characterization in the reports, and Bain said pressure is mounting within the industry to utilize these funds and source fresh new capital. It added that if tariff uncertainty dissipates, momentum could return more quickly than anticipated, and holders of available cash would be poised to grasp emerging opportunities...
RSK: Lots of pent up money for CRE investment and with very little new construction due to high costs and new tariffs on materials, things will take off soon.
Ken Notes: Madison and the burbs should make a real marketing effort to position themselves as an emerging Biotech, AI / IT, and Research Hub. Talk about EPIC and Exact Science, The Research Park I and II, The UW, room to grow, and so much more... I`ll do the newsletter...
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- - Volume: 25 - WEEK: 29 Date: 7/15/2025 12:29:48 PM -